Operating risk occurs when the property of an MNE is threatened through either confiscation or expropriation.

Name: Operating risk occurs when the property of an MNE is threatened through either confiscation or expropriation.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Operating risk, also known as business risk, refers to the risks arising from the day-to-day operations of a company, affecting its ability to generate earnings. Confiscation or expropriation risks are considered political risks, not operating risks.

Operating Risk Occurs When the Property of an MNE Is